Bangladesh, India sign deal to set up LPG terminal in Chittagong

Bangladesh and India have signed a Memorandum of Understanding (MoU) to jointly set up a Liquefied Petroleum Gas (LPG) terminal in Chittagong.

Bangladesh Petroleum Corporation and Indian Oil Corporation signed the MoU in a Dhaka hotel on Monday.

Bangladesh State Minister for Power, Energy and Mineral Resources Nasrul Hamid and Indian Minister of State (Independent Charge) for Petroleum and Natural Gas Dharmendra Pradhan witnessed the signing.

The two ministers had a meeting on bilateral cooperation on fuel before the signing ceremony.

Later, Hamid said India proposed to send the LPG from the terminal also to India.

“They have proposed a joint venture company. According to the proposal, the LPG plant will be set up here and they have sought our help to carry the LPG to eastern India through a pipeline,” Hamid said.

Pradhan said the terminal, once set up, would benefit both countries.

It would be possible to meet Bangladesh’s demand and send LPG from the terminal to the north-eastern Indian states, including Tripura, he said.

Hamid said they also discussed the import of fuel oil from Assam to Parbatipur through pipeline and liquefied natural gas (LNG) to Khulna from India’s deep sea terminal.

He said India also expressed eagerness to import gas from Bangladesh to southern West Bengal.

“It will be a win-win situation,” he added.

Indian Minister Pradhan earlier met Prime Minister’s Energy Affairs Adviser Tawfiq-e-Elahi Chowdhury.

They have discussed import of diesel from India through pipeline.

“The Indian delegation (led by Pradhan) will fix the price in consultation with Petrobangla and other related authorities,” Tawfiq said.

“It would be possible to start the import within three to four years,” he added.